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Category: NMA News

Northern Michigan Angels’ Executive Director Wins July 2, 2022 TCNewTech “Reverse” Pitch

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[Traverse City, MI – July 2, 2022] TCNewTech in Traverse City put five Michigan investors in
the hot seat to pitch their firms to entrepreneurs, startups, and small businesses in the
Northern Michigan area. The unique format was intended to educate local entrepreneurs and
startups, about who the players are and what they are looking for when investing in young
companies.

Jody Trietch, from Northern Michigan Angels, won the audience vote by a resounding margin.
She graciously donated the $500 winner’s check directly back to TCNewTech after pitching
about angel investment.

Jody Trietch, Executive Director, Northern Michigan Angels

Jody provided excellent insights into NMA’s funds and the types of companies that angels are
looking to invest in, and left the audience with several questions to ask themselves as they
prepare for their angel pitches.

View Jody’s Pitch

Representatives of other participating investment firms included in this “reverse” pitch event:

 

  • Josh Hart presented on Venture Capital and discussed how to maximize your chances
    of getting picked. Josh was representing Sweater Investment. He drew attention to the
    number of applications that the firms receive and the common denominator which
    typically differentiated an applicant. This ultimately boiled down to relationships and
    name recognition.
  • Thomas Coke discussed Incubators and Crowdfunding. Thomas is the Entrepreneur-In-
    Residence at GSVU and CEO of VarsityGems. Thomas provided fantastically honest
    insight into the statistics and options available to companies around these two concepts.
  • Broc W. Edwards pitched Seed and Pre-Seed Funding and represented his venture firm
    Pronoia. Broc brought an impressive amount of Wall Street experience to the stage.
    Broc advocated advancing Michigan investors, working with Michigan companies, rather
    than out-of-state funding flowing into Michigan.
  • Lowell Gruman took the stage in stride, representing a local favorite, Boomerang
    Catapult LLC. Lowell, a local powerhouse VC was pitching Series Round Funding A-C.
    He broke down what each stage’s goals and outcomes were and provided valuable
    insight and advice.

About Northern Michigan Angels (www.NorthernMichiganAngels.com)
Northern Michigan Angels (NMA) was founded January 2012 and is a 501 (c) 6 non-profit.
Members invest in scalable entrepreneurial companies whose potential success will have an
economic and quality of life impact in Michigan, especially in northwestern Lower Michigan.
Each member makes their own investment decision. NMA is not a fund and does not provide
investment advice. NMA is a member of the Angel Capital Association (ACA).
About TCNewTech (https://tcnewtech.org)

Up to 5 presenters highlight the new tech product or business venture each month – 5 minutes
to present and 5 minutes of Q&A.  Between presenters the audience is allowed to make brief
announcements for things such as job openings, persons seeking employment, other events
happening in the area related to technology. The audience is typically made up of technology-
minded people, tech companies looking for staff, individuals looking for investment opportunity,
start-up founders looking for investors, and tech geeks that just like learning about new
offerings. There is no charge to attend or to present.

NMA Reaches $7.4 million Invested

Northern Michigan Angels marked its 10th anniversary by announcing its members have invested $7.4 million during its tenure. Founded in 2012, the 501©6 nonprofit aims to invest in “scalable entrepreneurial companies whose potential success will have an economic and quality of life impact in Michigan, especially in northwest Lower Michigan,”

Each member of the group makes his or her own investment decisions. Members currently are invested in more than 20 startup companies.

Members in 2021 invested $1.3 million, a single-year record for the organization, in seven companies. Among them are Atlas Space Operations and Promethient, both based in Traverse City. They invested in services and technologies including personal climate control, satellite communications, keyless access control, clinical management software, oral vaccines, metabolic therapies for cancer treatment, and a competence- based human resources program. Northern Michigan Angels added 16 new members in 2021, bringing total membership to 54.

The organization regularly conducts pitch meetings so startup companies can speak directly to members. In 2021, AccessPoint, a Vensure Employer Services Company; Delamar – Traverse City; and Independent Bank joined as NMA sponsors. Existing NMA sponsors include: Stifel – Robert J. Fenton; Traverse City Business News; Dennis, Gartland and Niergarth; Northwestern Michigan College Foundation; and Idea Stream.

NMA Featured in Ron Jolly Interview

An Evening With Peter Heller | National Writers Series
Our Executive Director Jody Trietch and Committee Chairs Steve Lang and John Zaloudek joined local radio host Ron Jolly to discuss our record setting year last year and our big plans for the coming year. 

The recording of the interview is available here.

 

The Petoskey News-Review: NMA Concludes 10th Year with Record Investments

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Northern Michigan Angels conclude 10th year with record investments
By: Tess Ware, The Petoskey News-Review – Business January 29, 2022

View the Full Article

The Northern Michigan Angels investment group recently concluded their 10th year investing in the Northern Michigan economy.

In 2021, the organization reached a new single-year record, investing $1.3 million in seven different companies. Most of the organization’s investments
go into technology and other STEM-based companies, which brings programming, engineering jobs, as well as others, to the region. Northern Michigan Angels is a nonprofit investment group that hears pitches from entrepreneurs. They then offer not only money but also expertise to businesses as they begin operations.

Northern Michigan Angels current and new board members welcomed their new executive director on Nov. 4, 2021 at 20Fathoms. Pictured (from left) are Steve Lang, Dave Summers, Jody Trietch, executive director, Deanna Cannon, board chairperson, Jeff Hamilton, Liz VerSchure, Doug Morgenstern and John Zaloudek.

“We want to create jobs, those high tech jobs that will attract some of the children who are graduating and leave the area and don’t feel like they can come back and live in Traverse City,” said Deanna Cannon, board chair, founding member and former executive director of Northern Michigan Angels. In 2011, Cannon saw a need for an organization that would invest in Northern Michigan businesses and began to look into angel investing. An angel investor is a high-net worth person who uses their own money to invest in start-up companies in exchange for an equity share of the businesses, according to The Angel Capital Association.

Cannon formed an advisory board and the organization officially launched in 2012 with four people volunteering their time to get the organization up and running.

After 10 years as executive director, Cannon stepped down from her position, although she will continue to serve as chairman of the board. In November, Jody Trietch took over as executive director after leaving her position as chief financial officer of Boomerang Catapult.

“I think that there’s incredible opportunity, as more companies either move here or start here, but they need the support and the access to capital,” Trietch said. “So to be a part of that success of those companies in this region is really exciting.”

In 2022, Trietch plans to increase member engagement through workshops, monthly roundtables, pitch meetings and socials. One of the endeavors Northern Michigan Angels helped fund was Thermavance, solid state heating and cooling technology owned by the company Promethient.

Thermavance is built into seats and heats or cools without using airflow. This makes the technology ideal for vehicles like motorcycles that are often exposed
to the elements. Since Thermavance doesn’t use airflow, there are no holes in the seat that can get clogged with dirt or rainwater.

Promethient CEO Bill Meyers said the Northern Michigan Angels have provided diverse industry experience, as well as funding,
“They’ve been a great sounding board for ideas, our business plan. It’s one thing to get an investor but it’s another thing to get, really a consultant that
can help you scale a business, in addition to providing the funds that help you get there,” he said.

According to Cannon, Northern Michigan Angels plans to continue investing in endeavors that can benefit Northern Michigan.

“We say ‘we invest on the jockey, not the horse,’ meaning we invest in the entrepreneur. In their ability to pivot as needed, their ability to take advice,
because that is what is going to be needed along the way,” she said.

Atlas Space Team

Investment angels seek more members to expand Northern Michigan presence

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This article appeared in The Petoskey News-Review – September 21, 2021

Written by Paul Welitzkin

GAYLORD — One of the biggest obstacles fledgling entrepreneurs face is raising capital to get a business off the ground. In many cases, the entrepreneur’s idea is so new that traditional forms of financing such as bank loans may not be available.

That’s where angel investors enter the picture.

According to the Angel Capital Association, angels are high net-worth individuals who invest their money in start-up companies in exchange for an equity share of the businesses in many cases. 

Here in Northern Michigan, the Northern Michigan Angels (NMA) have provided over $6.7 million in investment to over 30 companies over a nine-year period.

“The best way to think about angel investing is this: companies start out with funds from the owners and their families. Then at some point venture capitalists come into the picture. Angel investors are in between those two groups,” said John Zaloudek of Williamsburg, an NMA board member.

Right now the NMA is looking to expand its membership.

“We started out in 2012 focused on Traverse City,” Zaloudek said. “We are currently expanding that geographical area for new members from Charlevoix, Gaylord, Harbor Springs and Petoskey.”

By adding new members, Zaloudek said the group will generate more investment capital and add industry and functional experience that will help NMA to assess the benefits and risks of companies it considers for investment.

There are requirements from the Securities and Exchange Commission that must be met before becoming an accredited investor. Zaloudek said investors must have a net worth of at least $1 million excluding the primary residence or an annual salary of at least $200,000 for two years.

Make no mistake, angel investing is considered a high risk opportunity. The businesses are startups with “high risk and everyone who is a member understands that,” Zaloudek said.

Someone has an idea for a product or service and they develop it into something they think is marketable,” said Zaloudek. “They make a presentation to us and then we decide whether or not to invest in the business.”

The investment can range from $5,000 and up.

“Each member decides whether to invest or not. They don’t have to invest in a certain number each year,” added Zaloudek. “We usually have two companies pitch to the membership each month and then one usually gets an investment while the other doesn’t.”

Traverse City-based Atlas Space Operations is among the companies that the angels have invested in, pumping over $1 million into this company over a five year period.

The NMA investment enables Atlas to maintain updates to its trademarked Freedom software that is designed to enable seamless communication between clients’ satellites and Atlas’ collection of ground antennas.

Another firm is Ann Arbor-based BlueWillow Biologics, a privately held clinical-stage biopharmaceutical company that produces nasal vaccines to protect global populations from respiratory infections, sexually transmitted diseases, and food allergies.

The NMA has invested $750,000 into Promethient, Inc. over five years. The Traverse City company uses a carbon-based, flexible material called graphene to deliver “Human Scaled Climate Control” under its Thermavance brand.

In June, NMA launched a new website. Included is an easy way for start-up business founders to alert NMA about their product or service and stage of development.

Zsuzsanna Fluck of the Eli Broad Graduate School of Business at Michigan State University said there are several companies that have received angel funding at their seed stage including well known names like Uber and DoorDash. Some more recent examples include Digg, Adstage, Handshake, and Misfit Wearables.

“Angels invest their own money. Venture capitalists, in contrast, raise funds from institutions, endowments, investment offices of wealthy individuals, retirement funds, and invest ‘other people’s money’ via venture capital funds,” said Fluck.

She said angels invest a smaller amount of capital than venture capitalists (typically around $25,000-$200,000).

“They provide financing for companies too young to appear on the venture capitalists’ radar. Angels are typically willing to agree to more flexible terms. Unlike venture capitalists, they are not bound by the partnership agreement of a fund or by fund economics,” she added.

Fluck said angel investing can be useful in rural areas like Northern Michigan where venture capital funds are farther away.

“Angels play a very important role in helping to launch promising startups by providing them with funding (and advice) in the pre-revenue stage. Once the startup achieves some milestones such as a prototype or some revenue, the angels can help to connect the startups to venture capitalists for more investment and mentoring,” said Fluck.  

 

Ron Jolly Radio Interview

NMA Featured on Ron Jolly Radio Show

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This morning Northern Michigan Angel’s Executive Director Deanna Cannon and Board Members Dave Summers and John Zaloudek were interviewed by local radio personality and newsman Ron Jolly. The interview focused on NMA’s new growth and developments going forward.

Ron Jolly Radio Show Interview
Photo of a Previous Appearance

Ron and Co-host/Producer, Colleen Wares, cover current topical stories from northern Michigan, around the state, and the world. Ron Jolly has covered northern Michigan on radio and TV for over 30 years. He’s known for featuring the latest news or hear nuggets of unusual historic facts weekday mornings between 7-10am.

Listen to the full interview here: https://soundcloud.com/ronjolly/n-m-angels-deanna-cannon-john-zaloudek-dave-summers-8-19-21mp3

New Milestone and Enduring Growth

[Traverse City, MI – June 30, 2021]  Northern Michigan Angels reached another milestone – over $6.6 Million invested in more than 30 entrepreneurial early-stage companies over the last decade. 

In the first half of 2021 NMA members invested $538,500 in five early stage Michigan companies – three are current portfolio companies – Atlas Space and Promethient, both located in Traverse City, and Esperovax. Investments were also made in two new companies – PassiveBolt and Claira. .   

NMA is actively planning for future growth – new members, new sponsors and the use of technology for members to learn about prospective investment opportunities. To support these efforts NMA launched a totally new website at NorthernMichiganAngels.com.  Anyone interested in becoming a member, a sponsor or making a pitch about their early stage company can use the website capability to indicate their interest.   

For most of 2020 and the first half of 2021 pitches by business founders continued regularly and successfully using technology – mostly Zoom.  With a computer and access to the internet members and presenters can participate no matter where they may be located at the time of a scheduled pitch presentation. In June pitch presenters and members participated in-person and virtually.  Current plans are to realize the benefits and continue this approach for the foreseeable future.  

Current NMA membership stands at 44 members. To support the geographically expansive membership efforts, a new ad was created by Idea-Stream which appeared in the July 2021 issue of Traverse City Business News (TCBN). Both are Traverse City businesses and are among our seven valued sponsors displayed prominently in the ad.  

About Northern Michigan Angels (www.NorthernMichiganAngels.com)

Northern Michigan Angels (NMA) was founded January 2012 and is a 501 (c) 6 non-profit.  Members invest in scalable entrepreneurial companies whose potential success will have an economic and quality of life impact in Michigan, especially in northwestern Lower Michigan. Each member makes their own investment decision. NMA is not a fund and does not provide investment advice.  NMA is a member of the Angel Capital Association (ACA).

Angel Investing

NMA Hosts CEO Network in Traverse City, MI

On Friday the Northern Michigan Angels had the pleasure of hosting the CEO Network group of Lansing, MI. The attendees enjoyed a trip to Chateau Chantal Winery, dinner at the Boathouse restaurant and then an informative morning at NMA’s portfolio company Atlas Space with Mike Carey and Sean McDaniel.

20fathoms space
20Fathoms Coworking and Incubator Space, Traverse City, MI

The group then proceeding up to 20Fathoms for a tour of the incubator and coworking space by Keri Amlotte and Maria Purvis and then wrapped up with a presentation on NMA Accredited Investor Membership facilitated by Bradley Matson, the Administrative Director of Northern Michigan Angels. Several members of NMA joined, including Dennis Arouca, Dave Summers, and John Zaloudek.